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Dundee United Debt


DougJamie

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https://www.bbc.com/sport/football/50214653

 

United Debt is 25% more than our annual turnover ...………… player wages going thru the roof and Neilson assured that he keeps his job even if they don't go up this year ?

Dundee is certainly the City of Discovery   Disaster...………...

If this American leaves them they will be next Sevco -

 

I blame our Goalie :lol:

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11 hours ago, DougJamie said:

https://www.bbc.com/sport/football/50214653

 

United Debt is 25% more than our annual turnover ...………… player wages going thru the roof and Neilson assured that he keeps his job even if they don't go up this year ?

Dundee is certainly the City of Discovery   Disaster...………...

If this American leaves them they will be next Sevco -

 

I blame our Goalie :lol:

I can see no mention of United's debt. There is a difference between debt and annual deficit. If their annual deficit was £3.76 million, how large is their debt likely to be?

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From the BBC article:

Dundee United have recorded a loss of £3.7m in the last year.

An annual report for shareholders details a deficit of £3,759,220, compared to £218,993 for the previous year, although the 2018 figure was reduced by £1.4m of sell-on fees.

Salary costs, including pensions and social security contributions, also came in at £4,159,060, 133% of an annual turnover of £3,124,236.

That figure has been inflated by a 39% wage increase of £1.13m.

 

That's £4m of debt over 2 seasons which would have been £5.4m if they hadn't received sell-on fees presumably for Andy Robertson. Given they've been down for 3 seasons they probably lost money in 2017 too. It's generally accepted wages to turnover ratio should be 50% - 60% so they're over double that.

If Shankland gets injured for any length of time they're in trouble...

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8 minutes ago, Al Bundy said:

From the BBC article:

Dundee United have recorded a loss of £3.7m in the last year.

An annual report for shareholders details a deficit of £3,759,220, compared to £218,993 for the previous year, although the 2018 figure was reduced by £1.4m of sell-on fees.

Salary costs, including pensions and social security contributions, also came in at £4,159,060, 133% of an annual turnover of £3,124,236.

That figure has been inflated by a 39% wage increase of £1.13m.

 

That's £4m of debt over 2 seasons which would have been £5.4m if they hadn't received sell-on fees presumably for Andy Robertson. Given they've been down for 3 seasons they probably lost money in 2017 too. It's generally accepted wages to turnover ratio should be 50% - 60% so they're over double that.

If Shankland gets injured for any length of time they're in trouble...

Debt and losses are not the same thing.

Their last accounts acknowledges that the ability of the club to continue running is entirely dependent on Ogren continuing to finance the operation.

The question is whether his investment is a gift, a transfer for equity or whether he is just loaning them the money. I think there is a charge on the stadium as well.

I didn't see any clear indicator in last years accounts of the net debt.

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United are not in a good position here, they are apparently  paying Shankland 5k a week, they have long contracts on several players , Nicky Clark and the likes...…..

There is no guarantee they are going to go up this year despite Caley also being in the merd, Thistle in freefall, Dundee hardly setting heather on  fire.

Losing 4-0 to QOS, after 1-0 to Alloa shows they don't have the momentum we had in 2017...…….  

Oaky is correct though its not Debt- its losses, however the BOD have said they have to get out of the Championship or this will spiral with wages and pensions...

 

The Premiership is hardly the Land of Milk and Honey but winning the Championship pays 600k, finishing last in Premiership along with European exploits money can be as much as 1.6m...………….

Losses can always be sustained if you have a backer, look at Sevco, however if Gate money drops they are in the shit big time 

 

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So some of their debt is "exchanged" for equity and also temporarily against things like property at Gussie Park (which is effectively a £1,000,000 loan), which they are supposed to buy back). One guy could pull the plug on them anytime...

It is clear from their high wage bill that further loses will be amassed this season - whether they win their league or not. And a bad run in the cups would add more debt...

If they do get promoted, then they will have to offload Championship quality players and sign Premiership quality players... more debt for both these things..and they don't really have players who are big assets to sell...

Then will they avoid relegation... if not, their sugar daddy better have very very very deep pockets indeed....   :ninja

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These b*st*rds got us relegated in 2001 through their over-spending while our (conservative) board spent rationally. In other words, they cheated us (exactly as Rangers cheated their way to 'glory' under David Murray).

Is it any wonder that I despise them for that and I sincerely hope that they implode with ultra-debt and do a 'Gretna'.

Although I'm sure that my stalker shull will disagree.

 

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  • 11 months later...
12 minutes ago, Yflab said:

They spent large the last few years, but I though they had American owner with wealth off the radar? 😂 

It was around about this time last year that United posted a financial loss of over £3 million in their annual accounts.

https://www.thecourier.co.uk/fp/sport/football/dundee-united/1687423/dundee-united-mark-ogren-interview-cost-cutting-finances/

 

They are reportedly paying wages of 5k a week for some players.  Financial madness for a club their size in the current climate. 

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35 minutes ago, munoz said:

They are reportedly paying wages of 5k a week for some players.  Financial madness for a club their size in the current climate. 

Maybe covid is going to bring about the end of financial doping in football in this country.

Maybe clubs are now starting to suspect that there won't be fans at games for many months.

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Dundee United's players and staff will meet on Thursday to discuss wage cuts but some are unhappy at the 20% reduction owner Mark Ogren is proposing (Daily Record).

And Ogren has laid bare the brutal financial realities at Tannadice as the club embarks on a cost-cutting programme that "could get messy" (Courier)

 

The meltdown begins. Who next.

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